Moody's to review Fortune Brands credit ratings

Moody's said Tuesday it is placing the credit ratings of Fortune Brands Inc. on review for a possible downgrade.

The review comes after Fortune Brands, which makes consumer products ranging from Jim Beam bourbon to Titleist golf balls, said it will cut its dividend by more than 50 percent and report first quarter profit ahead of its preview expectations.

Moody's said the moves are positive, but added that it anticipates leverage at the company will increase this year.

"The review will focus on the extent to which the company will be able to improve its credit metrics over the medium term, the progress that the company is likely to make in reducing leverage and the time that it would take the company to do so," Moody's said.

Moody's has a Baa2, or investment grade, long-term credit rating on Fortune Brands.

The credit ratings agency said any downgrade would not exceed one notch, meaning it is unlikely the company's rating would become speculative grade.

Fortune Brands shares rose $1.42, or 3.9 percent, to close at $37.94.